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Jetstar links order to growth

QANTAS has cut its order for Boeing 787 Dreamliners for its Jetstar subsidiary as the low-cost carrier prepares for slower growth on its long-haul routes.

Qantas was planning to replace 11 wide-body Airbus A330s in the Jetstar fleet with 15 Dreamliners, but has reduced its order to 14.

The airline insists the move is unrelated to troubles affecting Dreamliner fleets, which have been grounded by US and Japanese airlines while technical problems are investigated.

Jetstar is still expected to pick up its first Dreamliner later this year.

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The chief executive of Qantas, Alan Joyce, said plans for Jetstar to continue growing had not changed.

''While the plan is for Jetstar's long-haul network to keep expanding, we are using the flexibility in our agreement with Boeing to cancel a firm order knowing that we can replace it with one of our 50 options for this aircraft down the track,'' Mr Joyce said on Friday.

With Qantas' 50 options to purchase Boeing 787-8 and the larger 787-9 aircraft from 2016, it could still put a 15th Dreamliner in the Jetstar fleet if it wished and if conditions supported more growth at Jetstar.

The decision to reduce its 787 order was made late last year, Qantas said, before the Dreamliner's grounding in the US on Thursday.

Mr Joyce said Qantas was confident technical issues would be resolved by Boeing.

Meanwhile, Qantas said it was leasing five Boeing 717 aircraft and Bombardier Q400 turboprops, due to arrive in the second half of this year, to support more regional flying.

Qantas said the changes would have no impact on the company's planned capital expenditure, expected to be $1.8 billion in 2012-13 and $1.9 billion in 2013-14.